If new proposals by the Betting Control and Licensing Board (BCLB) are approved, anyone looking to open a betting firm in Kenya will need to invest millions in capital, while new gamblers will be required to submit a photo of themselves holding their national ID.

BCLB Director Peter Mbugi told the National Assembly’s Departmental Committee on Finance and Planning that the regulator is working on stricter licensing rules aimed at streamlining the sector, protecting consumers, and preventing easy access to the market by weak or speculative firms.

“For a small-scale betting shop (Muaka), we are proposing a minimum capital investment of Sh50 million. For public gaming operators such as casinos, the proposal is to raise the requirement to Sh5 billion,” Mbugi said.

He said these reforms are part of efforts to limit the number of operators and raise the bar high enough to attract only serious investors. For example, online betting companies and national lottery operators will be expected to demonstrate access to at least Sh200 million in capital.

The committee session, chaired by Kitui Rural MP David Mboni, heard that Kenya has seen a rapid increase in gambling firms, with over 236 licensed in 2024 alone. Mbugi said the ease of entering the sector had become a major concern, further pointing out that BCLB and the Communications Authority of Kenya had flagged 106 more gambling websites over the past year.

Currently, applicants pay a Sh10,000 processing fee and annual license fees range between Sh400,000 for smaller operators and Sh1 million for bigger ones. Mbugi argued that such relatively low amounts have allowed many unfit firms into the market.

Homa Bay Town MP Peter Kaluma backed the proposal to increase the capital threshold, saying the low licensing fees had caused a flood of betting companies, many of which lack financial and technical capacity to operate properly.

“The concern is not just about revenue, but also the public good versus public harm. We need to ensure that gambling is not contributing to societal decay,” Kaluma said.

The new proposals also seek to tighten know-your-customer rules. According to Mbugi, new gamblers will be required to upload a photo of themselves holding their national ID. This move is intended to curb access to betting sites by underage users who often rely on their parents’ identification details.

MPs raised concerns about the broader social impact of gambling, pointing to cases of addiction, poverty, and the exposure of children to betting content.

The committee also questioned the licensing models used for popular games such as Aviator, especially whether betting companies using third-party software suppliers are properly taxed. Mbugi admitted that some software is indeed outsourced and said such arrangements would be examined under the planned regulatory overhaul.

He acknowledged that the current regulatory system is outdated and unable to keep up with the fast-changing gambling landscape. The laws in use, including the Betting, Lotteries and Gaming Act of 1966, have not been properly updated and are no longer effective in regulating today’s complex betting environment.